“The growth has come out at 7.7 per cent, which is higher than what we had anticipated in the Second Advance Estimate. It shows the resilience and the robustness of the Indian economy,” Garg told after the release of the Provisional Estimates of Gross Domestic Product (GDP) for FY2025-26.
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The Ministry of Statistics and Programme Implementation (MoSPI) estimated India’s real GDP growth at 7.7 per cent in FY2025-26, an improvement over the 7.1 per cent growth recorded in FY2024-25. The latest estimates also showed positive momentum in the January-March quarter of FY2025-26.
Highlighting the key drivers behind the growth performance, Garg said investment activity remained strong during the year, as reflected in healthy capital formation numbers.
“I would also like to highlight that capital formation has been extremely good, which is a very good sign. It shows that investment expectations are good and investment ensures that future growth will also remain robust,” he said.
According to the MoSPI Secretary, the strong investment trend provides confidence about the economy’s medium-term growth prospects and signals continued confidence among businesses.Garg also singled out the construction sector for its strong performance during the year, describing it as an encouraging indicator for future economic activity.
“Especially the construction sector has done very well, which is also a very good sign going forward. These activities would have a long-term impact,” he said.
Asked whether the latest GDP data underscores India’s ability to withstand global economic challenges, Garg pointed to the country’s sustained growth performance over recent years.
“If you look at the last three years’ data, we have been consistently over 7 per cent and despite the global headwinds, we have shown good growth rates. Even in quarter four, they have been very positive. So definitely this resilience is showing up in the numbers,” he said.
The MoSPI Secretary also highlighted the role of ‘private consumption’ in supporting economic growth, noting that consumer demand remained strong through the year.
“The private consumption has been extremely robust. For example, the auto purchases have been extremely strong,” he said.
Garg said household confidence was clearly visible in the consumption data and had contributed significantly to the economy’s growth performance.
“In general, private consumption, private final consumption has stood up. The household confidence is showing in the numbers, that private confidence, and that is why the growth numbers have been so good,” he said.
The comments come as the latest provisional GDP estimates point to broad-based economic strength, supported by strong investment activity, healthy construction sector growth and resilient private consumption despite continuing global uncertainties.